Life360 (ASX:360) - Share price, News & Analysis

360 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

360 Stock Overview

Life360, Inc. develops and delivers a mobile application in the United States and internationally.

Rewards

Trading at 69.1% below our estimate of its fair value

Revenue is forecast to grow 33.09% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Life360 Competitors

Nearmap

ASX:NEA

AU$621.3m

FINEOS Corporation Holdings

ASX:FCL

AU$496.6m

Infomedia

ASX:IFM

AU$635.0m

Hansen Technologies

ASX:HSN

AU$1.0b

Price History & Performance

Summary of all time highs, changes and price drops for Life360
Historical stock prices
Current Share Price	AU$3.79
52 Week High	AU$14.03
52 Week Low	AU$2.93
Beta	1.3
1 Month Change	-27.67%
3 Month Change	-42.31%
1 Year Change	-29.55%
3 Year Change	-5.96%
5 Year Change	n/a
Change since IPO	-28.63%

Recent News & Updates

Apr 27

Life360 (ASX:360) Has Debt But No Earnings; Should You Worry?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	360	AU Software	AU Market
7D	8.3%	4.0%	0.6%
1Y	-29.6%	-8.3%	0.5%

Return vs Industry: 360 underperformed the Australian Software industry which returned -8.3% over the past year.

Return vs Market: 360 underperformed the Australian Market which returned 0.5% over the past year.

Price Volatility

Is 360's price volatile compared to industry and market?
360 volatility
360 Average Weekly Movement	14.6%
Software Industry Average Movement	10.0%
Market Average Movement	9.3%
10% most volatile stocks in AU Market	16.5%
10% least volatile stocks in AU Market	4.2%

Stable Share Price: 360 is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: 360's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

Founded	Employees	CEO	Website
2007	n/a	Chris Hulls	https://www.life360.com

Life360, Inc. develops and delivers a mobile application in the United States and internationally. The company offers Life360 mobile application for families that provides location, driving, and digital safety, as well as emergency assistance services. It also offers Jiobit, a wearable location device for young children, pets, and seniors.

Life360 Fundamentals Summary

How do Life360's earnings and revenue compare to its market cap?
360 fundamental statistics
Market Cap	US$513.10m
Earnings (TTM)	-US$33.56m
Revenue (TTM)	US$112.64m

4.4x

P/S Ratio

-14.9x

P/E Ratio

Is 360 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
360 income statement (TTM)
Revenue	US$112.64m
Cost of Revenue	US$22.77m
Gross Profit	US$89.88m
Other Expenses	US$123.43m
Earnings	-US$33.56m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.18
Gross Margin	79.79%
Net Profit Margin	-29.79%
Debt/Equity Ratio	5.0%

How did 360 perform over the long term?

See historical performance and comparison

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is Life360 forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 360 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 360 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 360 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 360's revenue (33.1% per year) is forecast to grow faster than the Australian market (4.8% per year).

High Growth Revenue: 360's revenue (33.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 360's Return on Equity is forecast to be low in 3 years time (2.2%).

Past Performance

How has Life360 performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-10.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 360 is currently unprofitable.

Growing Profit Margin: 360 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: 360 is unprofitable, and losses have increased over the past 5 years at a rate of 10.2% per year.

Accelerating Growth: Unable to compare 360's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 360 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (21.2%).

Return on Equity

High ROE: 360 has a negative Return on Equity (-13.4%), as it is currently unprofitable.

Financial Health

How is Life360's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 360's short term assets ($257.0M) exceed its short term liabilities ($41.4M).

Long Term Liabilities: 360's short term assets ($257.0M) exceed its long term liabilities ($10.9M).

Debt to Equity History and Analysis

Debt Level: 360 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 360's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 360 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 360 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Dividend

What is Life360 current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 360's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 360's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 360's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 360's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 360 has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure

CEO

Chris Hulls (37 yo)

15.33yrs

Tenure

US$1,647,061

Compensation

Mr. Chris Hulls co-founded Life360 Inc. in 2007 and serves as its Chief Executive Officer and Executive Director. Mr. Hulls has served as Director of Life360, Inc. since April 17, 2007. He did a stint in b...

CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.65M) is above average for companies of similar size in the Australian market ($USD809.69K).

Compensation vs Earnings: Chris's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: 360's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: 360's board of directors are considered experienced (3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31